Law Firms & IOLTA
Bookkeeping for Law Firms and Attorneys
Bookkeeping for lawyers needs more than basic transaction entry. Client funds held in trust, retainers earned over time, and records that must line up precisely all call for careful work. CityScape provides bookkeeping support built around those requirements.
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Scope of support
Bookkeeping built around how firms bill.
Operating account bookkeeping
Firm revenue, payroll, vendor costs, and overhead categorized and reconciled every month.
Client retainers
Retainer receipts, earned fee transfers, and client balances tracked so nothing is applied twice or missed.
IOLTA / trust records
Trust bookkeeping records maintained alongside the trust bank account and individual client ledgers.
Reconciliations
Regular reconciliation of operating and trust accounts against bank statements.
Client billing and receivables
Client invoices and payments recorded so you can see what has been billed, what has been collected, and what is still outstanding.
Three way reconciliation
The trust bank statement, the trust bookkeeping records, and individual client ledgers compared regularly so differences surface early.
Monthly financial reporting
Reports that show firm profitability, not just cash movement, so partners can plan.
QuickBooks workflows
A file structure and routine designed for legal billing realities rather than generic retail defaults.
Trust accounting
IOLTA reconciliation and three way reconciliation
IOLTA reconciliation is one of our specialized services. Trust bookkeeping is not simply another bank account to reconcile. A three way reconciliation compares three balances that should agree once legitimate reconciling items, such as outstanding checks and deposits in transit, are accounted for.
01
Bank statement balance
The balance reported by the bank for the trust account, adjusted for deposits and checks that have not yet cleared.
02
Trust account bookkeeping balance
The firm's own record of every deposit, disbursement, and transfer of client funds in the trust account.
03
Total individual client ledger balances
Each client's trust balance tracked separately. Added together, they should equal the trust account.
When those balances drift apart, it can point to a recording error, a missing transaction, or funds applied to the wrong client. Differences are much easier to correct early than months later. Learn more in our guide to IOLTA three way reconciliation. CityScape provides bookkeeping support only and does not provide legal advice or compliance certification.
Before trust setup
What we need to support your IOLTA bookkeeping
A separate trust checking account
A bank checking account used only for client trust funds is required before trust setup can begin. We don't open accounts or determine eligibility.
Appropriate QuickBooks configuration
Trust activity set up in QuickBooks Online so trust funds stay separate from the firm's operating money.
Individual client trust balances
A balance maintained for every client with funds in trust, so each client ledger can be reviewed on its own.
Many firms pair trust work with monthly bookkeeping for the operating account. If records are behind, a trust bookkeeping cleanup is often the first step, and our QuickBooks Online support for law firms can help organize the file itself. CityScape is based in the Minneapolis and Twin Cities area and works remotely with firms throughout the United States. Interested in other fields? See all the industries we work with.
FAQs
Law firm bookkeeping questions
Talk about your law firm's bookkeeping.
Tell us how your firm handles retainers, trust funds, and billing today. We'll discuss the bookkeeping support that fits your practice.
No pressure. We'll start by figuring out where your books stand.
Prefer to talk first? Schedule a consultation.